Binary Options Trading in Sweden
Binary options trading has taken the online world by storm. With this lucrative investment opportunity, investors can grow their portfolios quickly. There are many traders considering this opportunity, so how does this investment method fair towards Swedish investors and regulators? Let’s find out inside.
The trading of binary options in Sweden is in fact legal, yet unregulated like in most of Europe. This allows for a great deal of binary options platforms to choose from. However, not all are trustworthy, and investors must be wary when investing with some brokerages in Sweden. A not very well-known fact is that there are many brokerages operating out of Sweden who are not regulated by the FI, (Swedish Financial Supervisory Authority). It is not required for brokerages in Sweden to be regulated, causing some uncertainty among investors when choosing a broker for trading binary options.
That being said, there still are reputable brokers who are regulated under the FI in Sweden to choose from. The binary options trading industry is relatively new and underdeveloped in Sweden, and most parts of the world. However, with the increased popularity among Swedish investors, we are likely to see more regulations pertaining to the practice, and increased security because of this.
Currency Pairs & Spread
Swedish traders have many options when it comes to trading currencies. Like all binary options brokers, they mostly trade ‘Majors’ which tend to be the following currency pairs; AUD/USD, EUR/USD, GBP/USD, JPY/USD, USD/CHF, and USD/CAD. These are the top currency pairs traded among most binary options traders, but in Sweden, traders also tend to enjoy trading more exotic currencies. This is because Sweden is considered to have a lesser known financial market and economic impact. As well, they use the Swedish Krona as their primary currency. For this reason, Swedish traders enjoy trading EUR/SEK and USD/SEK. The ‘Major’ currency pairs, which are traded most often, have the tightest spreads. The lesser traded currencies have wider spreads and are called ‘Crosses’ and the least traded are called ‘Exotics’.
Swedish traders have a large number of platforms to choose from when trading binary options. There is a whole slew of reputable and regulated international platforms available to Swedish traders. But what about local binary options platforms? Well, it’s sad to say there are not a whole lot of options when it comes to regulated platforms/brokerages in Sweden. Even some of the most well recognized platforms are not well regulated, which raises some concern for binary option traders. The first thing any trader should do when choosing a platform to trade with in Sweden, is to determine if it is regulated by the FI, (Swedish Financial Supervisory Authority).
Platforms regulated by the FI follow strict regulation and meet all the criteria laid out by the FI. Platforms that have been accepted and regulated by FI are proven to be competent and reputable. The best trading platforms in Sweden offer investors the best in software and technology, excellent customer support, innovative and intuitive design, and follow strict regulations resulting in superior security.
Bonuses are not something new to binary options. This is the case for Swedish brokerages as well. There are various bonuses that companies offer their clients, enticing them into signing up, making more deposits, or simply to keep them trading with their platform. Some of the most common types of bonuses are as follows:
- Welcome Bonus – This is the most common type of bonus, usually receiving an amount of money just for joining a brokerage and making an initial deposit.
- No Deposit Bonus – Another bonus, like the welcome bonus, rewards you with money just for signing up and doesn’t even require a deposit.
- Mobile Bonuses – This is a bonus for downloading a brokerages mobile application and using it.
- Refer a Friend Bonus – Receive money for getting a friend to sign up, they may be required to make an initial deposit.
There is a wide variety and different variations of these bonuses, but they always result in the trader saving or gaining some money for trading on the platform.
Deposit and Withdrawal Options
In today’s society, there are many ways to deposit and withdrawal money. You can be paid from anywhere in the world at any time with various methods. Swedish brokerages are no exception to this, excepting many forms of deposit and withdrawal methods. The most common methods include:
- Bank Wire Transfers – Most anyone from anywhere in the world can complete a bank wire transfer. There are no restrictions with the use of bank wire transactions. This method proves to be very popular among Swedish investors.
- Credit Card – This option proves to be quite simple for investors, and is widely accepted in Sweden. There is a high percentage of trust using credit cards for deposits and withdrawals in Sweden. As well, many Swedish investors prefer to use a debit-visa card.
- Securities Transfers – An option available for those who intend on making very large deposits or withdrawals. It depends on the account type and the minimum deposit amount.
- E-Wallet Providers – Another popular method among Swedish investors. Popular online money transfer options in Sweden include; PayPal, Neteller, Skrill, and a Sweden payment processor company called Klarna.
Legality & Regulations
Currently the trading of binary options in Sweden is legal, just as in most of Europe. The law treats binary options as both securities instruments and a type of gambling. However, in most cases they are treated as financial instruments.
As well, just because binary options are legal doesn’t mean they are regulated. The regulator body in Sweden is FI, (Swedish Financial Supervisory Authority). This authority tends to look down on binary options and believes it is an inappropriate product for investors. However, this doesn’t stop them from at least trying to protect investors. The FI issues warning lists on fraudulent brokerages offering the trading of binary options. As well they require any foreign brokerages planning to offer their services to Swedish clients, to inform the FI prior to doing business.
- Are binary options legal in Sweden?
Yes, the trading of binary options is legal in Sweden. However, like most of Europe, the practice is unregulated.
- Are binary options regulated in Sweden?
No, it is unregulated. However, they are somewhat overseen and looked out for by the Danish FI.
- How can I trade binary options in Sweden?
First you must open an account with an investment firm offering binary options trading. Its is really quite simple, and can be done online in a few simple steps. Some companies do not even require a deposit to start trading.
Best Brokers in Sweden
In terms of reputable and regulated binary options brokers in Sweden, there are not many. Swedish investors looking to trade this way can look to offshore brokerages that are regulated with other competent regulatory bodies.
This article has attempted to overview the binary options market in Sweden and shine light on any unknown aspects of binary options trading in Sweden. We have learned of the rules and regulations pertaining to binary options in Sweden, as well as the details unique to binary options in Sweden.